The wall is set to be built around the memorial on Kent Street, Upper Gornal, and will feature the names of all of those who were killed in the First World War and the Second World War, which are currently listed on memorial boards inside St Peter's Church across the road.
Landfill firm Enovert has provided the bulk of the cash, with McDonald's on Kent Street also contributing.
The war memorial was opened in October 2018 after a project led by the Tenants and Residents Association and local councillors Adam Aston and Keiran Casey.
The new wall is also set to feature an 'interpretation board' giving more detail on the names.
Councillor Casey said: "It's fantastic news that we have been able to secure this funding and we're really grateful to everyone that has supported us, particularly to Enovert who have given us funding, the individuals that have donated to the project and to the local McDonald's store in Upper Gornal who have donated £1,000 towards this for the community.
"It's so important that we never forget the sacrifices that local people have made fighting for our freedom and we are really pleased that the memorial has become a real focal point right at the centre of the community."
Councillor Aston said: "We started the project for further improvements as we and local residents feel it is important to have the names of those brave local people that went to fight to defend our nation on public display.
"As part of the funding we have secured, there will also be an interpretation board and also some subtle lighting.
"This is another community project that just shows what we can all achieve when we work together to make our area and even better place to live, so we are very grateful for all the help and support we have received on this."